Empty office complexes signal slow job growth

A recession and the overbuilding of office complexes have hit the market with a one-two punch, leaving high vacancy rates and foreclosures scattered throughout the southeast Valley, experts say.

Dozens of commercial lease or for-sale signs dot office complexes along East Baseline Road between Val Vista Drive and Power Road. They also can be seen in the Superstition Springs business-park area along Hampton Avenue between Power and Sossaman roads and elsewhere.

Although there has been a slight uptick in leasing, vacancy rates remain high in Mesa, a reflection that job growth remains slow.

Those that are leasing are small businesses and some out-of-state companies looking to open satellite offices in the East Valley.

In the southeast Valley, there is 9.2 million square feet of office space available with roughly 3 million square feet vacant, reports Cassidy Turley BRE Commercial, a Phoenix-based real-estate firm.

"That's an aggregate southeast Valley vacancy rate of 35.5 percent, with east Mesa taking the biggest hit at a vacancy rate of 68.4 percent," said Gregg Sherman, a senior associate at the firm.

"The Mesa office market continues to be under significant pressure. Vacancy rates are expected to stay the same for calendar year 2011," he said, adding that absorption will be flat to negative this year and slightly up in 2011.

On a positive note, lower rents are a plus for tenants and companies looking to relocate, he said.